AAOIFI Issues Exposure Draft on Financial Accounting Standard for Takaful Institutions

The Accounting Board (AAB) of the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) has approved the issuance of the exposure draft on Financial Accounting Standard (FAS) for Takaful institutions, and has invited the Islamic finance industry to provide feedback on the draft, according to a recent AAOIFI statement.

The exposure draft on FAS on ‘Presentation and Disclosures in the Financial Statements of Takaful Institutions’ was initiated with the goal of aligning AAOIFI standards to global accounting standards, while addressing specific Shariah requirements. According to AAOIFI, the goal of the exposure draft will be to establish the overall requirements for presentation and the minimum requirement for the contents and disclosures of...